Speaking with Bloomberg, a GameStop executive shared that they were able to acquire the stores situated in 26 states from Cellular World Corp. Asking how much the purchase cost, GameStop declined to give out this information. The executive, however, hinted out that the total amount ate up "the bulk" of the $475 million they recently raised in a debt offering.
GameStop is relatively new to the phone retail industry. It only became a retailer in 2013 when it acquired an authorized AT&T retailer under the name of Spring Mobile. Back then, it operated in about 90 stores. Since its acquisition, the company claims that they now have a total of 1,421 AT&T Mobility stores; allowing them to continue expanding their reach beyond video games.
GameStop is recognized as the largest retail distributor of Cricket Wireless' products and services and offering these in 3,400 US GameStop locations. Each participating outlet has a "dedicated Cricket consultant" who is knowledgeable in answering questions about the prepaid brand and is equipped with the training to sell its devices and services. There is an option for Cricket customers to trade in their used video games and use that money to purchase Cricket's products or services.
With today's announcement, GameStop hopes to show the public how strong their relationship with AT&T is. At the same time, they hope it will make people see just how diverse they intend their business to be. The company aims to generate $200 million of operating earnings as they continue to grow their Technology Brands business investments before 2019 ends.
Source: Fierce Wireless